Lagos State Governor, Babajide Sanwo-Olu, presented a comprehensive budget estimate of N2.2 trillion for the 2024 fiscal year to the State House of Assembly on Wednesday. Themed “Budget of Renewal,” the proposed budget allocates 45% to recurrent expenditure, totaling N1.02 trillion, and 55% to capital expenditure, amounting to N1.22 trillion.
During the budget presentation, Governor Sanwo-Olu outlined the breakdown of the proposed financial plan. The total budget size stands at N2.24 trillion, incorporating N1.84 trillion in revenue and a deficit financing of N398.283 billion. The revenue sources include Internally Generated Revenue (IGR) at N1.251 trillion and total federal transfers of N596.6 billion.
Recurrent expenditure details were provided as follows: Total Overhead Cost at N527.782 billion, comprising overhead (N304.753 billion), subventions (N123.010 billion), and dedicated funds (N100.02 billion). Total personnel cost is estimated at N319.230 billion, with recurrent debt service amounting to N174.94 billion.
Addressing capital expenditure, Sanwo-Olu proposed a total figure of N1.224 trillion, consisting of N856.387 billion for Capital Expenditure and N367.893 billion for repayments.
Breaking down sectoral allocations, Economic Affairs takes the lead with N535 billion, followed by Environment at N94 billion, Health at N156 billion, Education at N199 billion, Social Protection at N50 billion, and Public Order and Safety at N84 billion.
Governor Sanwo-Olu emphasized that the 2024 budget aims to alleviate the impact of fuel subsidy removal and other economic challenges faced by Lagos residents.
Reflecting on the 2023 budget, Sanwo-Olu highlighted a commendable 78% implementation rate by the end of the third quarter, projecting a target of at least 90% implementation by year-end.
In response, Speaker of the House, Mudashiru Obasa, advocated for increased employment in the state workforce to enhance the effective implementation of government policies. As the budget moves through the legislative process, stakeholders await further deliberations and potential adjustments to address the diverse needs of Lagos State in the coming fiscal year.